J&J to Acquire Cardio Technology Company Abiomed for $16.6B
Johnson & Johnson will pay $16.6 billion to buy cardiovascular technology company Abiomed to strengthen its medical device division.
J&J will pay $380 in cash for each Abiomed share and an additional $35 per share in cash if certain commercial and clinical milestones are met
The deal, which is expected to close early next year, will be paid for with a combination of cash and short-term financing.
The company expects the acquisition to be neutral or to slightly dilute adjusted earnings in the first year after its completion.
Abiomed will run as a stand-alone business within J&J’s medical device segment once the deal is completed.
Michael R. Minogue, Abiomed’s Chairman, President and CEO will help in the transition. Andrew Greenfield most recently serving as Chief Commercial Officer has been appointed President of Abiomed.
The deal comes a few weeks after J&J said it topped third-quarter expectations, thanks to growth from its largest segment, pharmaceuticals. Sales climbed 2% in the company’s medical device segment to $6.78 billion.